1. MC The Collaboration
Imperative: Extending
Back-Office Systems
to Automate All Spend
Flint Hills Resources
© 2012 Ariba, Inc. All rights reserved.

2. The Rise of the Networked Enterprise
“Increasingly companies are
embracing collaboration as part
of their strategy to grow.”
77%
increased
access to 63%
increased
55% knowledge
marketing
better effectiveness
41% information
sharing
43%
improved greater
collaboration market
across
silos 24% share
increased
revenue
8%
higher
margins
“ Networked enterprises are 50% more likely to
have increased sales, higher profit margins, gain
market share, and be a market leader. ”
Source: McKinsey & Company, “The rise of the networked enterprise,
Web 2.0 finds it’s payday.” Survey of 4,394 executives. December 2010
2 Ariba, Inc. 2012 All rights reserved.

3. The Opportunity Lies in the “White Space” that
Exists Between Trading Partners’ Back-end Systems
“The White Space”
Buyers’ Suppliers’
Enterprise Apps Supplier Enterprise Apps
Response to inquiry
inquiry
Request for
clarification
Sourcing Negotiations
CRM
Applications Supplier Applications
Catalog network
creation
Catalog
Buying support
interface Order
Procurement Order
transmission Management
Applications Applications
Acknowledge
Change order order
Acknowledge
change
Cancel order
Advanced
ERP Ship Notice Accounting
Exceptions Invoice status
Apps/ ERP
Managing errors
Payment status
Payment
3 © 2012 Ariba, Inc. All rights reserved.

4. The Complexity of the Business Problem Quickly
Demonstrates Itself When You Visualize the Flows
(products, information, money) Between a Single
Business and Potentially 100,000s of Suppliers…
Buyer 1 Supplier 1
Sourcing Sales
Procurement Order Mgmt
Finance Finance
Sales Supplier 2
Order Mgmt
Finance
Supplier 3
Sales
Order Mgmt
Finance
4 © 2012 Ariba, Inc. All rights reserved.

5. The Problem Becomes Unworkable Once the
Challenge Is Expanded to Reflect the Volume
of Transactions and Interactions That Occur
Across an Industry’s Ecosystem…
Buyer 1
Sourcing
Supplier 1
Sales
Procurement
Order Mgmt
Finance
Finance
Buyer 2
Sourcing
Sales Supplier 2
Procurement
Order Mgmt
Finance
Finance
Buyer N
Sourcing
Supplier 3
Sales
Procurement
Order Mgmt
Finance
Finance
5 © 2012 Ariba, Inc. All rights reserved.

6. The Rationale for Pursuing
Collaborative Commerce…
With your ERP system in place and a Supplier Portal enabled, your company has
successfully automated key internal processes and some supplier elements…
Where you’d like to be
100%
-- Complex Collaboration Challenge --
!
% of Total Spend
Where you
probably
are today
with an ERP
and
Supplier
Portal
approach
% of Total B2B Trading Partners 100%
…but if your business is anything like the situations Ariba witnessed with our other ERP
customers, you still have a significant opportunity to capture additional efficiencies and savings by
automating all of your spend types and supplier relationships.
6 © 2012 Ariba, Inc. All rights reserved.

7. The Ariba Global Network Model
Ariba has been building towards this for more than a decade…
First, we built the Ariba® Network
from scratch to enable our existing
customers predominantly in
North America
Second, we acquired Quadrem™,
whose technology and geographic
strength extends the Ariba value
proposition throughout Latam, Africa,
Australasia, and Middle East
Third, we acquired b-process™ for
its two-sided network effect,
innovative e-Invoicing solutions and
VAT compliance expertise in France
and throughout Europe
Next, we will expand our global
network capabilities and make them
seamless for our customers
across the globe…
7 © 2012 Ariba, Inc. All rights reserved.

8. Ariba is Building the World’s Largest
Business Commerce Network
1,300+ buyers
700K sellers 32K buyers
22M POs 5K sellers
18M invoices 44.4M invoices
$200B in spend $80B spend
142 countries 24 compliant countries
72 currencies
36 compliant countries
65 buyers
90K+ sellers
4M purchase orders
3.2M invoices
$39B in spend
65 countries
8 © 2012 Ariba, Inc. All rights reserved.

9. Ariba is Building the World’s Largest
Business Commerce Network
Ariba + Quadrem + b-process > 3
Nearly 1 million trading partners
60+ million Invoices
invoices
$300+ billion in spend
142 countries
72 currencies
36 VAT compliant countries
2,500+ employees 40+ global offices 18 supported languages
9 © 2012 Ariba, Inc. All rights reserved.

10. Dan Carpenter – Director, Procurement Excellence
Russ Hunt – Senior Procurement Analyst
Jennifer Winkler – Senior Procurement Analyst
Ken Werth - BSA

11. Flint Hills Resources (FHR)
FHR is a direct, wholly owned subsidiary of Koch Resources LLC, which is
wholly owned by Koch Industries, Inc, a privately held company involved in
most aspects of the oil and gas industry. The operations of FHR and its
subsidiaries include the following:
Three crude oil refineries (approximately 816,525 bpd of crude oil refining capacity);
Six chemical production facilities;
Four ethanol production facilities and two biodiesel facilities;
A 50% interest in Excel Paralubes, a general partnership engaged primarily in the
manufacture of lubricant base oils;
Proprietary pipelines and pipeline investments (located principally throughout the
Mid-continent and Gulf Coast regions of the United States);
FHR is the United States’ 9th, and the World’s 24th, largest refiner. In addition, FHR
is the United States’ 5th largest producer of ethanol. FHR is also a leading producer
and marketer of petrochemicals, producing about nine billion pounds of
building-block chemicals.
11 © 2012 Ariba, Inc. All rights reserved.

12. Why did FHR
implement Ariba?
• Incumbent electronic commerce solution was being discontinued.
Failure to act would cause headcount addition
in the accounts payable group.
Incumbent system used for electronic transmission of purchase orders and
electronic receipt of invoices
Incumbent system limited to small number of suppliers due to off-market nature
of EC tool and cost to enable new supplier
Incumbent system could not handle freight, credits or blankets
• FHR wanted to move past basic electronic commerce into a
value-added method of transacting with suppliers. FHR felt we could
create a competitive advantage in our PP process by optimizing
our processes and leveraging new tools.
12 © 2012 Ariba, Inc. All rights reserved.

13. Mgmt Approval Value
Proposition
• Value proposition used for management approval was based solely
on accounts payable personnel cost savings through the receipt of
electronic invoices
• Other expected benefits that were not quantified include:
Optimization of confirmation process resulting in buyers being able to focus
on higher-value tasks
Data visibility leading to better analysis
Better visibility to supplier issues on a real-time basis (un-invoiced, bad pricing,
delivery issues, etc…)
Forced business process consistency
13 © 2012 Ariba, Inc. All rights reserved.

14. Document Types
• Outbound PO
Little value to FHR but high value to our integrated suppliers. Some suppliers willing to offer discounts
for electronic POs.
• Confirmation
Required by FHR on all but service POs
Allows us to run business rules on unit price, availability, and estimated delivery data
FHR has automated a large percentage of the confirmation process with a structured, rules-based,
exception process
• Advance Ship Notice (ASN)
When used by the supplier, allows us to see shipping documents and in some cases
tracking information
Would be optimal if all suppliers utilized
• Inbound Invoice
Fully automated – has allowed for personnel cost savings in the accounts payable group
Forced adherence to FHR data requirements
Forced adherence to billing amount; must equal FHR PO unit price (elimination of pricing
suspensions in Maximo system)
– Resolution of FHR expected price vs. supplier’s price occurs during the confirmation exception process.
14 © 2012 Ariba, Inc. All rights reserved.

15. FHR’s Implementation
Approach
• FHR has made Ariba adoption a key focus and gives preference to suppliers who will transact on
the Ariba Network.
In several cases, suppliers’ unwillingness to transact on the Ariba Network has caused FHR to move
business from that supplier in favor of a supplier that did transact on Ariba.
• Tiered our supplier base based on criteria:
Annual invoice count
Ariba status (currently on network or not)
Type of supplier (Materials, Service, Chem/Cat, etc…)
Complexity of transactions (blankets, spot, etc…)
• First group was a “test group” made up predominantly of suppliers that were previously
transacting on our discontinued EC platform. All were existing Ariba customers.
• Subsequent groups were based on value added to FHR. High invoice count suppliers or those
perceived to be low enablement effort were selected.
• Have moved to a more structured approach with scheduled enablements at set intervals. This
was done to minimize the internal resources required to manage.
• Plan is to enable all “eligible” suppliers with transaction counts that exceed
our threshold.
We will remove suppliers from the network who have marginal
invoice counts but high support costs.
15 © 2012 Ariba, Inc. All rights reserved.

16. Architecture
• Communication and transfer of data occurs between Maximo and Ariba utilizing the
Maximo Ariba Adapter
Built on Maximo Integration Framework, leverages integration capabilities and error
handling/management
Includes object structures, services, and publishing channels to transact with the Ariba Network
Transaction support for purchase order, change order, order cancellation, line level order confirmation,
ship notice, invoice, invoice status and remittance advice
cXML standard based XML formatting using flexible XSL templates
Pre-configured Maximo e-commerce functionality, screen design, Supplier
escalations/notifications, error management Supplier
AS2
cXML
Supplier
HTML
PO Management Supplier
EDI
Maximo Invoice Management Email Supplier
CSV
eCommerce Payment Remittance NETWORK®
Adapter
Supplier
Purchase Order cXML Paper
Purchase Order Cancel
Oracle Purchase Order Changes
Supplier
Order Confirmations
Advanced Ship Notice
Invoices
Invoice Statuses
Remittance Supplier
16 © 2012 Ariba, Inc. All rights reserved.

17. Monthly
17
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Plan
Sep-11
Oct-11
© 2012 Ariba, Inc. All rights reserved.
Nov-11
Dec-11
Jan-12
Touchless Invoices
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Actual - Touchless
Jul-12
Ramp Up Actuals
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
LTD - Plan
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
LTD - Actual
Oct-13
Nov-13
Dec-13
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
LTD

18. Achieved Value Proposition
• Payable invoice automation/optimization through electronic processing
Accounts payable personnel cost savings due to elimination of keyed invoices
– 44%+ of our invoices come in via Ariba and are touchless
Time saved researching invoice that come in without complete/valid information (PO number, Workorder or Location)
Reduced calls to AP to find status of invoice (received, payment date)
• Buyer optimization
Through the automation of the confirmation process, we have freed up, on average, two hours per day for each buyer
(we expect to capture more value in this area as we enable additional suppliers).
– 60%+ of our PO Lines run through this automation logic with a majority being touchless
• Data visibility
By having suppliers return their catalog code and contract/catalog price on the confirmation, we can better analyze
the data. Prior to Ariba, we had limited visibility into detailed spend data unless we asked the supplier for the
information (high number of “material” orders).
By taking in the supplier’s price, we can see where we have issues between our expected price and the supplier’s ask
price. Using this data to better manage our suppliers.
• Forced business process consistency
Internal – forces all our sites to conform to defined processes
External – forces our suppliers to transact in a compliant manner
(accurate and complete data)
18 © 2012 Ariba, Inc. All rights reserved.

19. Lessons Learned
• Your implementation pain/joy is directly related to how well the supplier handles
their enablement!!!
• We found that to be successful, you must ensure key participants within the
supplier’s firm are notified and appropriately trained (reduce the surprises).
Corporate offices vs. local branch processing
Billing, Order Fulfillment, Acct Mgmt
• Don’t assume that suppliers currently on the Ariba Network will be a slam dunk.
In many cases field office “A” may be well versed in Ariba, but you are doing
business with field office “B” who has no idea what Ariba is.
• Test with your integrated suppliers. Monitor first transactions to ensure code rolled
to production correctly (data mapping issues).
• Be aware of the enablement support costs (to include IT) and tailor your
enablement around this. “Flippers” who transact infrequently may require more
support as they tend to forget how to use the Ariba front end.
19 © 2012 Ariba, Inc. All rights reserved.

20. FHR – Supplier Collaboration
• Through the implementation of Ariba, FHR gained insight into our
suppliers’ processes. In some cases we found issues within the
supplier’s processes and/or systems that were unknown to us, and in
some cases, unknown to the supplier.
• Through the implementation of Ariba, FHR found holes in internal
processes. The visibility created by Ariba can shine a light on
internal process optimization opportunities.
• By working with our suppliers to optimize the process for both
parties, value was created across the PP process.
• Key Learning: If you can create value in the supplier’s processes,
they are far more likely to readily adopt the tool, which in turn adds
value to the buyer’s organization.
20 © 2012 Ariba, Inc. All rights reserved.

21. FHR – Ariba Collaboration
• Throughout the implementation process, FHR worked closely with
Ariba to configure the tool to support FHR business processes.
• In many cases, FHR modified existing business processes based on
Ariba tool needs. In these cases, it was determined that Ariba was
enforcing best practices.
• FHR continues to work with Ariba to suggest changes to the
product that FHR believes would benefit the user community
(suppliers and buyers).
• Ariba has worked well with FHR to solve problems that were
encountered during the implementation. In some cases, Ariba has
modified their processes to better support the tool and FHR.
21 © 2012 Ariba, Inc. All rights reserved.

22. FHR – IBM Collaboration
• Throughout the implementation process, FHR worked closely with
IBM to configure the adapter to support FHR business processes.
• Short implementation timeframe of two to three months allowed
IBM, Ariba, and FHR to leverage adapter to successfully
implement customizations.
• FHR continues to work with IBM to suggest changes to the adapter
that FHR believes would benefit the user community.
• IBM has worked well with FHR to solve problems that were
encountered during the implementation. In some cases, IBM has
modified their processes to better support the adapter and FHR.
22 © 2012 Ariba, Inc. All rights reserved.

23. Share This Session…NOW…from
your mobile!
• All presentations are posted:
Guidebook mobile app
– Search Apple or Android app store
for Guidebook
– Enter code “collabor8”
Or at Slideshare.net/Ariba
• Share via email or social media
**Come back soon – we are syncing #AribaLIVE
audio and video interviews to
the presentations**
23 © 2012 Ariba, Inc. All rights reserved.